Legal Analysis On The Corporate Governance Of The Innovative Internet Company Based On The Trend Of Alibaba Partnership System

The partnership system which Alibaba proposed makes an innovation in the field of Corporate Governance by the Initiator Team of the Innovative Internet Company. Based on this system, this article studies the influence of the innovation of the Corporate Governance on the market, under the background of Institutional Investors activism. Since the power to control the company is always an inevitable issue in the field of the Corporate Governance. It contains a plentiful of legal and economic value. The power to control the company is the core problem in the field of Corporate Governance, the significance of it influents not only the company-self but also the topics of protecting the interests of investors and optimizing the allocation of market resources.The first chapter of this article traces the evolution of the traditional Corporate Governance to clarify the detail of development of it. The Corporate Governance is closely related to the practice on the various types of company in the market of USA. The economists and juris proposed the theory of Corporate Governance from different points of view, and carried on the empirical analysis through the practice of different companies on the market. Specifically, the present Corporate Governance has experienced a process which is related to the condition of the market and the practice of the different companies.The second chapter of this article proposes two basic trends in the markets at present. The first trend is the dilution of the equity of the Corporation. And the second one is that the Institutional Investors has become increasingly active in order to safeguard their interests. Then, this article introduces the characteristics of Innovative Internet Companies such as Alibaba and indicates the situation that the Initiator Team of the Innovative Internet Company will lose the power to control the company if the company is listed in the traditional Corporate Governance under the trends of the market at present. At the end of this chapter, the article analyzes the structure of Alibaba partnership system, and indicates the innovation of the Corporate Governance.The third chapter of this article analyzes the reality of the plight to operate the partnership system. That is the barriers and the feasibility of the operation. In the conditions of the market and the legal system, the Alibaba partnership system will be impeded in four aspects of the legal concepts, the legal system, the supervision and the judicial protection. This article also analyzes the feasibility of the partnership system, and indicates the methods to operate the system.The fourth chapter refers to the other system which to ensure the power to control company. They are the career partnership system and the dual class equity. In order to protect the power to control the company, the advantage of Alibaba partnership system is more obvious. And it is a suitable and practical direction to reform the Corporate Governance. At last, this article proposes some suggestions on how to protect the interests of the investors in the Alibaba partner system perspective.